Pexip Holding

Investor Presentation • May 6, 2024

Quarterly Presentation Q1 2024

May 6, 2024

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These materials have been produced by Pexip Holding ASA (the "Company", and with subsidiaries the "Group"). The materials have been prepared for the exclusive use of persons attending an oral briefing and meeting to which these materials relate given by a representative of the Company and/or persons to whom these materials have been provided directly by an authorized representative of the Company (the "Recipients"). For purposes of this notice, "materials" means this presentation, its contents and appendices and any part thereof, any oral presentation and any question or answer session during or after or in relation to any of the foregoing.

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Pexip at a -glance

2011 founded

293 employees across 25 countries

Niche video conferencing player

Market leading interoperability and secure video meetings provider

Software only

Develop and deliver software and SaaS

Unique tech partnerships

Partner with the global industry leaders to complement their solutions

Serve large organizations

Across enterprise and public sector

\$105 million

in Annual Recurring Revenue (ARR)

Q1 highlights

Solid Q1 results

• Q1 revenue of NOK 292 million, up 12% y-o-y
• Total ARR at USD 104.8 million, up USD 2.0 million q-o-q
• Adjusted EBITDA¹ of NOK 64 million, cash flow of NOK 105 million

Continued positive development in Connected Spaces

• USD 1.1 million in ARR growth in the quarter for Connected Spaces
• Benefiting from positive market trends, HP|Poly partnership, improved competitive dynamics and product enhancements

Major wins in Secure & Custom with HP|Poly

• Major expansion with the US Social Security Administration together with HP|Poly and large defense organization
• Partnership 1 year anniversary on May 1

Expanding Interop partnerships

• Launched first interoperability service to Zoom-registered rooms

• Starting partnership with Cisco to deliver interop solutions to the US Federal market

• Pexip is unique in providing AI functionality to self-hosted video platforms, built on NVIDIA partnership

• Target General Availability launch in H2 2024

Delivering Secure AI Financial targets and 2024 outlook

• Medium term we target to consistently deliver above 10% ARR growth and minimum 20% EBITDA
• For 2024 we have the following outlook:
  • 5-10% ARR growth
  • 13-18% EBITDA

MISSION

To make seamless video communication available to all organizations regardless of technology platforms and security requirements

Pexip Connected Spaces Video meeting interoperability

When several video technologies need to work seamlessly together

Selected partners

Pexip Secure & custom Spaces Video meetings for self hosting or private clouds

When complete privacy and control over data is required

Selected partners

On a journey to connect any meeting room to any meeting

First Zoom interop cooperation - Improving interoperability for Zoom-registered devices

← →	Count us us us us /interop # /zurm/calendar/accountSetting			Q	女 0
	Q Search Support 1.888.799.0125				Contact Sales Request a Demo
ZOOM Products Solutions	Resources Plans & Pricing	Schedule	Join	Host v	Web App v	0)
> User Management
Scheduler Management	< Back to Calendar Integration
> Team Chat Management	admin@brania.no
> Device Management
Node Management	Domain Match
· Room Management	When this option is enabled, join information parsing will only be applied if the meeting organizers domain matches the room domain.
Zoom Rooms
Calendar Integration	Parse SIP URLs When this option is enabled, we will attempt to parse SIP dial strings from the calendar invitation
Digital Signage Content
Cisco/Polycom Rooms	Parse Webex Meetings
H.323/SIP Room Connector	When this option is enabled, we will attempt to parse WebEx join information from the calendar invitation
> Workspaces Management	Parse Bluejeans Meetings
> Phone System Management	When this option is enabled, we will attempt to parse BlueJeans join information from the calendar invitation
> Account Management
> Advanced	Parse Microsoft Teams Meetings
	Pexip CVI customer ID
Zoom Learning Center	If you have Pexip CVI services, enter the "Pexip customer ID" for your Pexip service (provided by Pexip
Video Tutorials	support) to allow Cisco/Polyom rooms with calendar integration to use the Poxip "SIP Guest Join" feature when a calendar invite for a Microsoft Teams meeting lacks CVI information
Knowledge Base	cbea1651-4236-4bb0-a6a2-2001169c03

• Have enabled Zoom-registered systems to use Pexip' SIP Guest Join capability
• This enhances the Teams meeting experience for organizations that are primarily using Zoom
• Pexip to drive sales of this capability as an add-on subscription for Zoom Rooms

Starting a partnership with Cisco to deliver Connected Spaces solutions to US Federal customers

• Scope: Provide Pexip interoperability solutions to U.S. Federal and U.S. Department of Defense customers (focused on GCC High IL4, GCC DoD IL5, and higher environments)
• Fully integrated Pexip and Cisco solutions for seamless operations
• Joint customer activities
• Cisco and Pexip are focused on supporting our joint customers by providing best in class connectivity from any device to any meeting.

MISSION

To make seamless video communication available to all organizations regardless of technology platforms and security requirements

Pexip Connected Spaces Video meeting interoperability

When several video technologies need to work seamlessly together

Pexip Secure & custom Spaces Video meetings for self hosting or private clouds

When complete privacy and control over data is required

Selected partners Selected partners

Complementary video services are used to cater to an organization's differing security & privacy requirements

SECURE & CUSTOM SPACES

Transcription & meeting summaries

Pexip has a strong partnership with NVIDIA and is one of the pioneer users of their new capabilities

• Pexip is working with NVIDIA to take advantage of their Maxine AI developer platform
• Pexip is featured as one of the early adopters in the NVIDIA press release
• Pexip provides access to NVIDIA's latest technology without a cloud service. "We bring the cloud to you"

Pexip has developed its own AI Media Server architecture to enable new AI features

• Customers requiring data privacy and control prefer self-hosted solutions
• Delivering an AI feature is more complex in a self-hosted software product than in a cloud-based SaaS product
• Pexip has through its long-standing NVIDIA partnership developed an architecture that can bring AI features to the self-hosted Pexip Infinity solution. "We bring the cloud to you"
• First use-case being delivered is live transcription and translation (both speech to text and speech to speech)

Four quarters of consecutive growth and improved profitability

Total ARR USDm

Adjusted EBITDA¹ NOKm, Last twelve months

Free Cash flow² NOKm, Last twelve months

1 EBITDA less Other gains and losses 2 Operating cash flow, investment cash flow and leases

Sales update

15

Connected Spaces

• Growth in Connected Spaces in Q1 benefiting from improved product differentiation, increasing momentum in Poly|HP partnership and BlueJeans sunsetting their CVI solution
• Seeing increased customer activity on Pexip Connect for MTRs and Zoom
• Won a contract with a leading global airliner to provide Teams interoperability
• Won a contract with a major US software firm to provide Teams interoperability

Secure and custom solutions

• Secure and custom solutions growing 4% in Q1 and 15% y-o-y, driven largely by strong upsell across several accounts in Secure and Custom
• Secure spaces was the main source of growth, with 27% growth yo-y. Significant recent wins include:
  • Secure meetings to a large defense organization
  • Secure meetings to the US Social Security Administration
• Continued strong momentum in the Defence Sector

Financial update

18

Total ARR base at USD 105m in Q1 2024

Americas

Growth in both business areas

USD million, quarter-over-quarter

• Continued strong net retention in Secure Spaces, in part as major new sales in Q1 were additions to existing customers driving growth – 3.7% quarterly growth/15% annualized
• Reduced churn in Connected Spaces, however, also lower new sales/upsales compared to Q4 2023

Continued improvement in revenue and EBITDA

• Positive revenue increase of 12% compared to Q1'23
  • Combination of self-hosted software and as-a-Service driving growth
• Adjusted EBITDA increase of NOK 30 million compared to revenue increase of NOK 31 million
  • Operational improvements keep cost level stable despite inflation

Q1 2024 OPEX base 2% below Q1 2023

Quarterly OPEX development

NOKm

Other operating expenses Salary and personnel expenses

Share option related costs

Salary and personnel expenses

Stable salary and personnel expenses, with somewhat lower fixed salary and higher variable compensation achievement from stronger sales compared to Q1 2023

Other Operating expenses

• Overall in line with previous quarters, and 13% lower than Q1 2023.
• Reduction mostly from lower consultancy costs compared to Q1 2023

NOK 105 million in positive cash flow in Q1

Cash flow bridge Q1 2024 NOKm

• Positive EBITDA, improved working capital and positive impact of exchange gains contributing positively to Q1 cash flow
• Reduced investment and lease cash flow
• NOK 6 million from exchange gains on cash holdings in foreign currency

Q1 2024 Financial results

Profit and loss

NOK millions

	Q1 2024	Q1 2023	Y-o-Y
Revenue	292	261	31
Cost of goods sold	27	21	6
Gross Profit	265	239	26
Salary and personnel exp.	161	160	2
Other operating exp.	39	45	(6)
Adjusted EBITDA	64	35	30
Other gains and losses	7	(0)	7
EBITDA	58	35	23
D&A	20	29	(9)
EBIT	38	6	32
Net financials	23	26	(3)
Profit/loss before income tax	60	32	29

• 12% increase in year-on-year revenue, driven by stronger Software and Software-as-Service revenues
• COGS is mainly relating to sale of Pexip-as-a-Service with the increase being related to increased usage as well as activation of key AI features
• EBITDA excluding other gains and losses of NOK 64 million, NOK 30 million higher than in Q1 2023.
• NOK 7 million in other gains and losses from restructuring supporting long-term cost reductions
• Reduction in D&A in Q1 2024 due to reduction in depreciation of fixed assets and reduced leasing costs
• Reduction in net financials from lower gains from foreign exchange differences

Outlook and targets

25

Improved ecosystem position going into 2025

Partners with active R&D and/or sales collaboration by year

Market outlook

• Continued positive market outlook across the business areas
• Partnerships expected to continue to drive growth
• Q2 2024 ARR expected 105-108 USD millions

2024 outlook

• 5 to 10% ARR growth
• 13-18% EBITDA¹

Mid-term targets Consistently deliver:

• Above 10% ARR growth
• Above 20% EBITDA¹

Upcoming dates

Q2 2024 Quarterly Presentation

August 15th , 2024

Q&A Investor.pexip.com

BACKUP

Supporting materials

Summary of key figures

KPI	Unit	Q1 2023	Q2 2023	Q3 2023	Q4 2023	Q1 2024	Y-o-y	Q-o-Q
ARR
Connected Spaces	MUSD	59 9	59 6	60 5	63 1	64 2	4 3	1 1
Secure & Custom	MUSD	32 7	34 5	35 5	36 3	37 7	5 0	1 3
Legacy	MUSD	5 6	4 6	3 8	3 3	2 8	-2 8	-0 5
Total	MUSD	98 3	98 7	99 7	102 8	104 8	6 5	2 0
P&L
Revenue	MNOK	260 6	232 9	214 9	285 2	292 0	31 3	6 8
of Goods Sold Cost	MNOK	-21 3	-24 4	-25 2	-28 1	-27 1	-5 7	1 1
Salary and personnel expenses	MNOK	-159 6	-157 0	-143 6	-161 2	-161 4	-1 8	-0 2
Other OPEX	MNOK	-45 0	-42 8	-35 4	-36 7	-39 1	5 9	-2 4
Adj EBITDA	MNOK	34 8	8 7	10 6	59 2	64 4	29 7	5 3
Other gains and losses	MNOK	0 3	-1 0	-5 7	-4 5	-6 7	-7 1	-2 2
EBITDA	MNOK	35 1	7 7	4 9	54 6	57 7	22 6	3 0
D&A	MNOK	-29 1	-42 8	-27 1	-100 0	-19 8	9 3	80 2
EBIT	MNOK	6 0	-35 1	-22 3	-45 4	37 9	31 9	83 2
Financials Net	MNOK	25 9	10 1	-3 2	0 4	22 5	-3 3	22 1
Tax	MNOK	-9 7	5 8	1 2	-13 6	-15 0	-5 3	-1 4
profits Net	MNOK	22 2	-19 2	-24 2	-58 6	45 4	23 3	104 0
Cash and cash flow
flow Operating cash	MNOK	73 4	55 5	(1 7)	50 4	112 3	38 9	62 0
cash flow Investing	MNOK	(26 2)	(9 2)	(3 4)	(12 5)	(8 7)	17 4	3 7
Principal lease payments	MNOK	(6 5)	(5 3)	(5 2)	(4 8)	(3 0)	3 5	1 7
cash flow Free	MNOK	40 7	41 1	(10 3)	33 1	100 5	59 8	67 4
Cash position	MNOK	465 9	507 7	494 3	522 7	628 1	162 2	105 4

Comments Q1 2024

ARR

• Delta ARR Q1 of 2 MUSD
• Annual ARR growth of 7% p.a. (10% excl legacy)

Revenues

• All time high revenue quarter
• Benefiting from ARR growth, as well as some currency benefits

COGS

• Up year-on-year from higher traffic usage and rollout of AI-powered layouts. Somewhat down q-o-q

Opex

• Almost flat y-o-y and q-o-q, with inflation and currency effects from weak NOK balanced out by realized FTE efficiencies

Cash

• Strong operating cash flow driving change in cash of NOK 105 million in Q1, and NOK 162 million in 12 months